Talking Bottoms

We opened lower and closed higher yesterday but the turnaround was neither dramatic nor powerful. The reason being because we never had a really good washout. That does not mean that we can't rally, only that it will likely occur in fits and starts if we do rally.

I prefer panic bottoms because they are easier for me to trade. I buy when I sense panic and try to hold on tight. As long as I don't get shaken out, before I know it the market is zooming higher and I caught the bottom. The type of bottom we saw yesterday takes longer to form and often gives me too much time to think and second guess myself.

While there might be bumps along the way I believe the market should have a positive bias through the middle of next week. I don't believe the upside potential is great and Europe is a wild card.

 

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